Crude Prices Plunge on Global Economy Concerns

Crude prices plunged on Thursday as concerns about the outlook of the U.S. economy increased.

The losses came after the U.S. government reported on Wednesday the economic crisis crushes business and consumer fuel demand. Crude supplies in the United States reached an 82-week high last week.

On Thursday, the U.S. Labor Department said the number of people staying on unemployment benefits rose by 11,000 to a record4.81 million in the last week of January.

The Commerce Department said initial jobless benefit claims dropped to a seasonally adjusted 623,000, from an upwardly revised figure of 631,000 the previous week. The figure was the highest since October 1982, when the economy was emerging from a steep recession.

Light, sweet crude for March delivery dropped 1.96 U.S. dollars, or 5.5 percent, to settle at 33.98 dollars a barrel, the lowest since Dec. 19.

In London, the March Brent contract rose 37 cents to settle at 44.65 dollars on the ICE Futures exchange.